$11b train line centrepiece of Napthine government budget

Farrah Tomazin

An $11 billion train line between South Yarra to Melbourne Airport forms the centrepiece of the Napthine government’s election-year cash splash - but the long-awaited project won’t be complete for over a decade.

With six months before voters head to the polls, the Coalition has staked its fortunes on a no-surprises budget with $27 billion worth of major projects, including new roads and rail, pre-existing hospital upgrades and a dozen new schools to cater for Melbourne’s booming population.

After months of trailing Labor in the polls, Denis Napthine now heads towards November’s election with a infrastructure agenda rivalling the Kennett years, using healthy surpluses, higher fees and fines, and the sale of public assets to help pay for his promises.

As expected, the so-called Melbourne Metro rail project – which proposed building a cross-city tunnel with underground stations at Parkville and the CBD – has been dumped by the government, in favour of a realigned ‘‘Melbourne Rail Link’’ that will also incorporate a connection to the airport.

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The new rail line will start at South Yarra station, travel to underground stations at Domain and Fisherman’s bend, and then continue to new platforms at Southern Cross, where passengers will be able to take a train to the Tullamarine every 10 minutes during peak times.

Treasurer Michael O’Brien committed $830 million over the next four years to kick start the project, but as criticism emerged over the new route, he insisted the realignment would cater for the emerging Fisherman’s Bend precinct, free up capacity in the City Loop and allow for an additional 30 peak-hour services across the network.

“This is the biggest expansion to the network since Henry Bolte created the City Loop,” Mr O’Brien said. “Melbourne Rail Link delivers far greater capacity… and you avoid tearing up the middle of the city for years and causing disruption.’’

The government has described its agenda as ‘‘once in a generation infrastructure program’’ with other announcements including both stages of the East West Link; almost $450million new prison beds and facilities; 12 new schools, mostly in growth areas; an upgrade of the Cranbourne-Pakenham rail corridor; and the widening of the Tullamarine Freeway.

But despite the big-ticket items, the government has forecast an operating surplus of $1.3 billion in 2014-15, growing to $3.3 billion in 2017-18, with increased taxes, fees and fines, and the sale of the Port of Melbourne and thee Rural Finance Corporation to pay for its promises.

An ‘‘efficiency dividend’’ across the public service also be used to claw back some revenue, along with a new tax on planning permit applications worth over $1 million.

Mr O’Brien boasted that strong economic management in previous budgets had paved the way for Tuesday’s spoils. But opposition leader Daniel Andrews slammed the budget as an ‘‘election giveaway’’ from a ‘‘desperate premier – someone who is petrified that he will lose the election at the end of the year’’.

‘‘After having done absolutely nothing for this state for the last three and a half years, suddenly every piece of infrastructure can be built with money we don’t have, all at once? I think the people of Victoria are much smarter than Denis Napthine thinks they are,’’ Mr Andrews said.

Others have also criticised the massive investment on infrastructure compared with social services, particularly for disadvantage young people.

‘‘Despite accelerating youth unemployment, this Budget does virtually nothing to increase the skills and work experience of our young people to prepare them to take up opportunities that the economy may have to offer,’’ said Brotherhood of St Laurence Executive Director Tony Nicholson.

But business groups welcomed the changes, which also included a payroll tax reduction, from 4.9 per cent to 4.85 per cent.

‘‘Not only will projects like the $11 billion Melbourne Rail Link and ongoing road investments ease congestion and reduce the cost of doing business in Victoria, but they will provide job opportunities for our state and lead to urban reinvigoration,’’ said Australian Industry Group state director Tim Piper.

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